Key data
| Regulation | Order HAC/557/2026, of June 3 |
|---|---|
| Publication | June 5, 2026 |
| Entry into force | June 5, 2026 |
| Affected parties | Ministries, public bodies and entities of the state public sector |
| Category | Public Sector |
| Budget year | 2027 |
| Growth forecast | 2.2% in 2026 |
Ministerial departments and entities of the state public sector have had since June 5, 2026 the official instructions to build their budget proposals for 2027. The Order HAC/557/2026 is not a direct spending regulation: it is the roadmap that determines how they are prepared, what criteria they must meet and what cross-cutting analyses are mandatory. The context is relevant: the conflict in the Middle East has driven up energy prices, but Spain maintains a growth forecast of 2.2% for 2026, which provides room to sustain social and green spending priorities.
What does this regulation establish?
Order HAC/557/2026 sets the technical and administrative instructions that all ministerial departments and public bodies must follow to prepare their spending and revenue proposals for the 2027 fiscal year. It establishes four major strategic priorities that must guide the proposals:
- Quality employment: budget items aimed at job creation and improvement will have priority in resource allocation.
- Strengthening the Welfare State: healthcare, education, social services and benefits must be protected or strengthened.
- Access to affordable housing: proposals are expected to include concrete measures to support residential access.
- Ecological transition: investments and spending must align with climate and sustainability objectives.
Beyond the priorities, the Order introduces or consolidates three cross-cutting analysis elements that affect how proposals are justified and evaluated:
| Cross-cutting element | Description |
|---|---|
| AIReF assessments | Incorporated under the "comply or explain" principle: bodies must adopt the recommendations of the Independent Authority for Fiscal Responsibility or formally justify why they do not. |
| Gender impact analysis | Mandatory in budget proposals, evaluating the differential effect by sex of budget items. |
| Impact analysis on children | Proposals must incorporate evaluation of the effect on the child population. |
| Environmental sustainability analysis | Evaluation of the environmental impact of spending items. |
| "Brown dimension" | New addition to the report on alignment with ecological transition: identifies and quantifies spending that may be harmful to the environment, expanding cross-cutting budget analysis beyond "green" spending. |
Economic and operational impact
For managers and officials of public bodies, this Order has direct operational consequences in the budget preparation process:
- Greater burden of justification: the AIReF "comply or explain" principle requires formally documenting the body's position regarding each recommendation received. Simply ignoring them is not enough.
- New mandatory reports: in addition to existing gender impact analyses, those on impact on children and the new "brown dimension" in the ecological alignment report are added. This implies more technical work in the preparation phase.
- Conditioning of energy spending: the context of high energy prices due to the Middle East conflict may push upward the supplies and operations budget items, requiring more careful planning.
- Priorities as a viability filter: proposals that do not align with the four strategic priorities (employment, welfare, housing, ecological transition) will have more difficulty prospering in budget negotiations.
Who does it affect?
- Ministries: all ministerial departments of the General State Administration.
- Public bodies: agencies, autonomous bodies and public business entities of the state public sector.
- Entities of the state public sector: any entity with an obligation to prepare a budget proposal integrated into the GSB.
- Planning and management control teams: the technical officials responsible for preparing budget reports and cross-cutting analyses.
- Internal auditors and controllers: who must verify compliance with the new analysis requirements.
This regulation does not directly affect private companies, self-employed workers or SMEs. Its scope is exclusively the state public sector.
Practical example
An autonomous body attached to a ministry receives in June 2026 the instructions of Order HAC/557/2026 to prepare its budget proposal for 2027. When preparing its report, the planning team detects that the AIReF issued a recommendation the previous year on the efficiency of one of its spending programs. Under the new "comply or explain" principle, the body has two options: incorporate the changes recommended by the AIReF in its 2027 proposal, or draft a formal and documented justification for why it does not adopt them.
Additionally, when including an investment item in facilities, the team must complete the new "brown dimension" report: identify whether that investment has any component that could be harmful to the environment and quantify it. If the proposal includes, for example, fleet renewal with combustion engine vehicles, it must be reflected in that report as spending potentially not aligned with ecological transition.
What should organizations do now?
- Review AIReF recommendations received in previous fiscal years and decide whether to incorporate them into the 2027 proposal or prepare a formal justification for non-compliance.
- Update budget preparation templates to include the new mandatory analyses: impact on children and "brown dimension" in the ecological alignment report.
- Align spending proposals with the four strategic priorities (quality employment, Welfare State, affordable housing, ecological transition) to maximize approval chances.
- Plan for the impact of rising energy costs on operating budget items, given the context of high prices due to the Middle East conflict.
- Coordinate with gender equality teams to ensure that gender impact and child impact analyses are correctly integrated into budget reports.
- Read Order HAC/557/2026 in full to know the internal deadlines for submitting proposals and the required technical formats.
Frequently asked questions
What is the AIReF "comply or explain" principle in budgets?
It is a mechanism by which public bodies that prepare budget proposals must adopt the recommendations issued by the Independent Authority for Fiscal Responsibility (AIReF) or formally justify why they do not. Order HAC/557/2026 expressly incorporates it into the GSB 2027 preparation process, which means that ignoring AIReF recommendations without written justification is no longer a valid option.
What is the "brown dimension" in the budget?
It is a new category of analysis incorporated by Order HAC/557/2026 to the report on alignment with ecological transition. It identifies and quantifies budget spending that may be harmful to the environment, complementing the analysis of "green" spending. Its inclusion expands cross-cutting budget analysis and requires bodies to also map their budget items potentially harmful to the climate or natural environment.
What are the priorities of the General State Budget for 2027?
Order HAC/557/2026 sets four strategic priorities for the GSB 2027: quality employment, strengthening the Welfare State, access to affordable housing and ecological transition. These priorities must guide spending proposals from all state ministries and public bodies.
Does Order HAC/557/2026 affect private companies or self-employed workers?
No. The scope of application of this Order is exclusively the state public sector: ministries, autonomous bodies, agencies and public business entities. Private companies, SMEs and self-employed workers have no direct obligations arising from this regulation, although the budget priorities it establishes can influence public spending policies that affect them indirectly.
What macroeconomic context does the Order include for the GSB 2027?
Order HAC/557/2026 is framed in a context of conflict in the Middle East that has driven up energy prices. Despite this, Spain maintains a growth forecast of 2.2% for 2026, which serves as the basis for income and spending projections for the 2027 fiscal year.
Official source
Consult complete regulation at official source
Notice: This article is purely informational in nature and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://www.boe.es/diario_boe/txt.php?id=BOE-A-2026-12037